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    These 10 States Rely Most on Income Taxes — How Much Does It Cost To Live There?

    By G. Brian Davis,

    5 hours ago

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    Different states fund their government spending with different types of taxes . Some states charge no income taxes, others charge no sales taxes. Many tax both, unfortunately for residents.

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    So which states rely most heavily on personal income taxes from their residents? How do those states compare to others, when combining their total tax burden to include other tax types? And how does the overall cost of living in these states compare?

    Here are the top ten states that rely most heavily on personal income taxes — and how they compare to the national average.

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    1. Oregon

    Fully 64% of Oregon’s revenue comes from income taxes from individual taxpayers, according to data from Pew Research .

    Combining all types of taxes, including income taxes, sales and excise taxes, and property taxes, Oregon residents pay an average of 8.44% of their annual income to state taxes. That ranks around the middle of the pack, ranked 23rd for highest taxed states based on Wallet Hub’s annual analysis .

    Oregon costs a pretty penny to live in, however. It ranks 43rd cheapest, according to the Missouri Economic Research and Information Center ‘s comparison of cost of living in all 50 states plus DC and Puerto Rico. On an index where 100 represents the average, Oregon cost of living clocks in at 114.1.

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    2. Massachusetts

    Over half (53%) of Massachusetts’ revenue comes from personal taxes.

    The average resident gives up 8.55% of their income to state taxes, including all tax types. Massachusetts ranks 20th for total tax burden (lower means more expensive).

    As for the cost of living, it ranks 49th cheapest — a dubious distinction. The cost of living index in Massachusetts is a lofty 144.3.

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    3. Missouri

    Missouri collects 50% of its tax revenue from individual income taxes. However it still charges a lower total tax burden than the bulk of its peers, ranking 35th. Average Missourans pay 7.76% of their paycheck to state coffers.

    Your dollar definitely stretches further in Missouri than most of the nation. With a cost of living index of 88.5, it ranks as the sixth cheapest state.

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    4. Georgia (Tied)

    While Georgia collects 49% of its revenue from personal income taxes, it still imposes a relatively light tax burden on residents. Georgians pay 7.65% of their income each year in state and local taxes, including sales and property taxes. That puts it at a total tax burden rank of 36.

    Georgians also enjoy a modest cost of living, indexed at 91.3. It ranks as the 11th cheapest state in the union.

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    4. Montana (Tied)

    Montana ties with Georgia for the highest percentage of state revenues from income taxes, at 49%.

    Even so, it ranks 39th for total tax burden, with a relatively light state tax burden of 7.50%.

    The cost of living also ranks lower than average as the 22nd cheapest state. Montana’s cost of living index is 94.6.

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    6. Utah

    With 48% of its state revenue from income taxes, Utah slips in just behind Georgia and Montana.

    Utah does charge relatively high taxes across the board. It ranks as the 11th highest-tax state, siphoning off an average of 9.35% of residents’ budgets each year.

    As for the cost of living, it costs slightly more than average, with an index of 102.9. It ranks as the 35th cheapest state.

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    7. New York

    The Empire State imposes high taxes across the board, and collects 47% of its revenue from individual income taxes.

    Indeed, New York charges higher taxes than any other state in the union. It collects a total tax burden of 12.02% of the average resident’s annual income.

    Don’t expect any relief from a low cost of living, either. New York ranks 47th for affordability, with a cost of living index of 123.1.

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    8. Virginia

    Virginia fills 45% of its coffers with personal income tax revenue. It ranks slightly above the median in total tax burden, ranking 21st and collecting an average of 8.45% of residents’ incomes.

    As for cost of living, it too ranks slightly above average, at 31st cheapest state with a cost index of 101.3.

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    9. California

    Infamous for its high taxes, the Golden State collects 44% of its revenue from income taxes.

    It ranks fifth highest in total tax burden, draining 10.40% of its residents’ annual income. It’s also the second most expensive state to live in, with a cost of living index of 145.0, just behind Hawaii.

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    10. North Carolina

    North Carolina funds 43% of its government spending with personal income tax revenue.

    It ranks better than average on total tax burden however, at 32nd in the country. The state charges an average of 7.89% for its combined taxes.

    As for the cost to live there, North Carolina also comes in slightly under average, with a cost of living index of 98.5.

    This article originally appeared on GOBankingRates.com : These 10 States Rely Most on Income Taxes — How Much Does It Cost To Live There?

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